ABM Industries Incorporated
Jun 2, 2010

ABM Industries Announces Second Quarter 2010 Financial Results, Declares Quarterly Dividend and Reaffirms Guidance

Strong Net Operating Cash Flow from Continuing Operations

NEW YORK, Jun 02, 2010 (BUSINESS WIRE) -- ABM Industries Incorporated (NYSE:ABM):

Quarter Ended Six Months Ended

(in millions,

April 30, Increase April 30, Increase
except per share data) 2010 2009 (Decrease) 2010 2009 (Decrease)
Revenues $ 855.5 $ 855.7 NM* $ 1,725.3 $ 1,743.2 (1.0 )%
Net cash provided by continuing operating activities $ 50.0 $ 30.9 61.8 % $ 37.7 $ 44.3 (14.9 )%
Net Income $ 8.6 $ 12.8 (32.9 )% $ 21.4 $ 27.0 (20.9 )%
Net income per diluted share $ 0.16 $ 0.25 (36.0 )% $ 0.41 $ 0.52 (21.2 )%
Adjusted EBITDA $ 29.4 $ 36.1 (18.5 )% $ 62.0 $ 66.4 (6.6 )%
Income from continuing operations $ 8.6 $ 13.0 (33.9 )% $ 21.5 $ 27.8 (22.8 )%
Income from continuing operations per diluted share $ 0.16 $ 0.25 (36.0 )% $ 0.41 $ 0.54 (24.1 )%
Adjusted income from continuing operations $ 11.9 $ 16.4 (27.3 )% $ 26.0 $ 29.4 (11.6 )%
Adjusted income from continuing operations per diluted share $ 0.23 $ 0.32 (28.1 )% $ 0.49 $ 0.57 (14.0 )%
* Not Meaningful
(This release refers to non-GAAP financial measures described as "Adjusted EBITDA", "Adjusted Income from Continuing Operations", and "Adjusted Income from Continuing Operations per Diluted Share". Refer to the accompanying financial tables for supplemental financial data and corresponding reconciliation of these non-GAAP financial measures to certain GAAP financial measures.)

ABM Industries Incorporated (NYSE:ABM) today announced revenues for the second quarter of fiscal year 2010 of $855.5 million compared to second quarter of fiscal year 2009 revenues of $855.7 million. Net income for the second quarter of fiscal year 2010 was $8.6 million, a 32.9% decrease from $12.8 million in the second quarter of fiscal year 2009. Net income per diluted share for the second quarter of fiscal year 2010 decreased 36.0% to $0.16 compared to second quarter of fiscal year 2009 net income per diluted share of $0.25. Net income for the second quarter of fiscal year 2010 was impacted by a $2.7 million after-tax expense ($0.05 per diluted share) for a specific legal contingency; a $2.2 million after-tax expense ($0.04 per diluted share) resulting from one additional day of labor expense in the second quarter of fiscal year 2010 compared to the year-ago quarter; and higher than anticipated state unemployment insurance expense of approximately $0.03 per diluted share.

"The Company's adjusted earnings for the quarter are as anticipated and we continue to expect year-over-year growth in the second half of the fiscal year," said Henrik Slipsager, president and chief executive officer, ABM Industries Incorporated. "Revenues were flat for the quarter and the first six months of the fiscal year, pointing to signs of gradual improvement in the economic climate compared to fiscal year 2009. Traditional seasonal reductions in labor expense in the second half of the fiscal year combined with one less working day in the third quarter will contribute to improved profitability. We also will mitigate the impact of higher unemployment insurance expense during the second half of the year through a combination of government hiring incentives, working with our clients and improved operating efficiencies. Further, we expect that recent sales wins, our expanding sales pipeline and an increasing focus on client retention will drive top-line growth going forward.

"We also are continuing to have success with our strategies for effectively managing costs and capital. We reduced our line of credit by $27 million, to $145 million, in the quarter. Our days sales outstanding of 48 decreased by 3 days since January 31, 2010. Executing our cost and capital strategies helped the Company achieve net operating cash flow from continuing operations of $50 million, a more than 60% increase over the year-ago quarter. We will continue our successful operating strategies to deliver bottom line savings and generate cash.

"Our divisions continue to secure new business as the economy improves while maintaining a sharp focus on job profitability. Engineering had another strong quarter, with both revenues and operating profit growing by more than 20% in the second quarter of fiscal year 2010. While Parking revenues were essentially flat year-over-year, the Division increased operating profit by more than 6% in the second quarter, driven by strong performance with several airport clients and an ongoing focus on management of indirect expenses. The Janitorial Division continues to aggressively manage labor and other costs to offset pressures on revenues. The Division's results were primarily impacted by the one additional day of labor expense in the second quarter and higher state unemployment insurance costs. Security revenues were slightly down for the quarter, and profitability was also impacted by the higher than anticipated state unemployment insurance tax rates."

Income from continuing operations for the second quarter of fiscal year 2010 was $8.6 million ($0.16 per diluted share) compared to $13.0 million ($0.25 per diluted share) in the year-ago quarter. As noted above, income was impacted by a $2.7 million after-tax expense ($0.05 per diluted share) for a specific legal contingency; a $2.2 million after-tax expense ($0.04 per diluted share) resulting from one additional day of labor expense in the second quarter of fiscal year 2010 compared to the year-ago quarter; and higher than anticipated state unemployment insurance expense of approximately $0.03 per diluted share. Excluding items impacting comparability, adjusted income from continuing operations was $11.9 million, or $0.23 per diluted share, for the second quarter of fiscal year 2010. This compares to adjusted income from continuing operations of $16.4 million, or $0.32 per diluted share, in the second quarter of fiscal year 2009.

The Company's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and excluding discontinued operations and items impacting comparability) for the second quarter of fiscal year 2010 was $29.4 million compared to $36.1 million in the second quarter of fiscal year 2009.

The Company reported revenues for the six months ended April 30, 2010 of $1.7 billion, flat compared to year-ago revenues of $1.7 billion. Net income for the first six months of fiscal year 2010 was $21.4 million, a decrease of 20.9% compared to $27.0 million for the first half of fiscal year 2009. Net income per diluted share for the first six months of fiscal year 2010 decreased 21.2% to $0.41 per diluted share compared to $0.52 per diluted share in the first half of fiscal year 2009. Income from continuing operations for the first six months of fiscal year 2010 was $21.5 million, or $0.41 per diluted share, compared to $27.8 million, or $0.54 per diluted share, for the first six months of fiscal year 2009. Adjusted income from continuing operations for the first half of fiscal year 2010 was $26.0 million, or $0.49 per diluted share, compared to $29.4 million, or $0.57 per diluted share, for the first six months of fiscal year 2009. Adjusted EBITDA for the first six months of fiscal year 2010 was $62.0 million compared to $66.4 million for the first six months of fiscal year 2009.

The Company also announced that the Board of Directors has declared a third quarter cash dividend of $0.135 per common share payable on August 2, 2010 to stockholders of record on July 1, 2010. This will be ABM's 177th consecutive quarterly cash dividend.

Guidance

The Company reiterates its estimates that full fiscal year 2010 income from continuing operations per diluted share will be in the range of $1.25 to $1.35 and adjusted income from continuing operations per diluted share, for the same period, will be in the range of $1.35 to $1.45.

Conference Call

On Thursday, June 3, 2010 at 9:00 a.m. (EDT), ABM will host a live webcast of remarks by President and Chief Executive Officer Henrik Slipsager and Executive Vice President and Chief Financial Officer James Lusk.

The webcast will be accessible at: http://investor.abm.com/eventdetail.cfm?eventid=82116

Listeners are asked to be online at least 15 minutes early to register, as well as to download and install any complimentary audio software that might be required.

Following the call, the webcast will be available at this URL for a period of 90 days.

In addition to the webcast, a limited number of toll-free telephone lines will also be available for listeners who are among the first to call 800-289-0726 within 15 minutes before the event. Telephonic replays will be accessible during the period from two hours to seven days after the call by dialing 888-203-1112 and then entering ID #8343808.

Conference Call Presentation

In connection with the conference call to discuss earnings (see above), a slide presentation related to earnings and operations will be available at the Company's website at www.abm.com, and can be accessed through the Investor Relations portion of ABM's website by clicking on the "Presentations" tab.

About ABM Industries Incorporated

ABM Industries Incorporated (NYSE:ABM), which operates through its subsidiaries (collectively "ABM"), is the leading provider of facility services in the United States. With fiscal 2009 revenues of approximately $3.5 billion and more than 90,000 employees, ABM provides janitorial, facility, engineering, parking and security services for thousands of commercial, industrial, institutional and retail facilities across the United States, Puerto Rico and British Columbia, Canada. ABM's business services include ABM Janitorial Services, ABM Facility Services, ABM Engineering Services, Ampco System Parking and ABM Security Services. For more information visit www.abm.com.

Cautionary Statement under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements that set forth management's anticipated results based on management's current plans and assumptions. In addition, the financial results reported in this release continue to be subject to adjustment until filing of the Company's quarterly report on Form 10-Q for the quarter ended April 30, 2010. Any number of factors could cause the Company's actual results to differ materially from those anticipated. Factors that could cause actual results to differ include but are not limited to the following: (1) risks relating to our acquisition strategy may adversely impact our results of operations; (2) intense competition can constrain our ability to gain business, as well as our profitability; (3) we are subject to volatility associated with high deductibles for certain insurable risks; (4) an increase in costs that we cannot pass on to clients could affect our profitability; (5) we provide our services pursuant to agreements which are cancelable by either party upon 30 to 60 days' notice; (6) our success depends on our ability to preserve our long-term relationships with clients; (7) our transition to a shared services function could create disruption in functions affected; (8) we incur significant accounting and other control costs that reduce profitability; (9) a decline in commercial office building occupancy and rental rates could affect our revenues and profitability; (10) deterioration in economic conditions in general could further reduce the demand for facility services and, as a result, reduce our earnings and adversely affect our financial condition; (11) the financial difficulties or bankruptcy of one or more of our major clients could adversely affect results; (12) our ability to operate and pay our debt obligations depends upon our access to cash; (13) because ABM conducts business operations through operating subsidiaries, we depend on those entities to generate the funds necessary to meet financial obligations; (14) certain future declines or fluctuations in the fair value of our investments in auction rate securities that are deemed other-than-temporarily impaired could negatively impact our earnings; (15) uncertainty in the credit markets and the financial services industry may impact our ability to collect receivables on a timely basis and may negatively impact our cash flow; (16) any future increase in the level of debt or in interest rates can affect our results of operations; (17) an impairment charge could have a material adverse effect on our financial condition and results of operations; (18) we are defendants in several class and representative actions or other lawsuits alleging various claims that could cause us to incur substantial liabilities; (19) since we are an attractive employer for recent émigrés to this country and many of our jobs are filled by such, changes in immigration laws or enforcement actions or investigations under such laws could significantly and adversely affect our labor force, operations and financial results and our reputation; (20) labor disputes could lead to loss of revenues or expense variations; (21) federal health care reform legislation may adversely affect our business and results of operations; (22) we participate in multi-employer defined benefit plans which could result in substantial liabilities being incurred; and (23) natural disasters or acts of terrorism could disrupt our services. Additional information regarding these and other risks and uncertainties the Company faces is contained in the Company's Annual Report on Form 10-K for the year ended October 31, 2009 and in other reports we file from time to time with the Securities and Exchange Commission. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Information

To supplement ABM's consolidated financial information, the Company has presented income from continuing operations for the second quarter and first six months of fiscal years 2010 and 2009 and guidance for fiscal year 2010, as adjusted for items impacting comparability. These adjustments have been made with the intent of providing financial measures that give management and investors a better understanding of the underlying operational results and trends and ABM's marketplace performance. In addition, the Company has presented earnings before interest, taxes, depreciation and amortization and excluding discontinued operations and items impacting comparability (adjusted EBITDA) for the second quarter and first six months of fiscal years 2010 and 2009. Adjusted EBITDA is among the indicators management uses as a basis for planning and forecasting future periods. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for financial statements prepared in accordance with generally accepted accounting principles in the United States. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.)

Financial Schedules
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)
Quarter Ended April 30, Increase
(In thousands, except per share data)

2010

2009

(Decrease)

Revenues $ 855,461 $ 855,711 NM*
Expenses
Operating 771,974 766,148 0.8 %
Selling, general and administrative 65,244 64,265 1.5 %
Amortization of intangible assets 2,694 2,680 0.5 %
Total expenses 839,912 833,093 0.8 %
Operating profit 15,549 22,618 (31.3 )%
Other-than-temporary impairment losses
on auction rate security:
Gross impairment losses 101 - NM*
Impairments recognized in
other comprehensive income 26 - NM*
Interest expense 1,177 1,313 (10.4 )%
Income from continuing operations
before income taxes 14,245 21,305 (33.1 )%
Provision for income taxes 5,622 8,256 (31.9 )%
Income from continuing operations 8,623 13,049 (33.9 )%
Loss from discontinued operations, net of taxes (46 ) (272 ) NM*
Net Income $ 8,577 $ 12,777 (32.9 )%
Net Income Per Common Share - Basic
Income from continuing operations $ 0.16 $ 0.25 (36.0 )%
Loss from discontinued operations - - NM*
Net Income $ 0.16 $ 0.25 (36.0 )%
Net Income Per Common Share - Diluted
Income from continuing operations $ 0.16 $ 0.25 (36.0 )%
Loss from discontinued operations - - NM*
Net Income $ 0.16 $ 0.25 (36.0 )%
* Not Meaningful
Average Common And Common Equivalent Shares
Basic 52,007 51,301
Diluted 52,719 51,553
Dividends Declared Per Common Share $ 0.135 $ 0.130
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)
Six Months Ended April 30, Increase
(In thousands, except per share data) 2010 2009 (Decrease)
Revenues $ 1,725,345 $ 1,743,183 (1.0 )%
Expenses
Operating 1,554,075 1,553,416 NM*
Selling, general and administrative 128,046 135,652 (5.6 )%
Amortization of intangible assets 5,469 5,503 (0.6 )%
Total expenses 1,687,590 1,694,571 (0.4 )%
Operating profit 37,755 48,612 (22.3 )%
Other-than-temporary impairment losses
on auction rate security:
Gross impairment losses 36 - NM*
Impairments recognized in
other comprehensive income 91 - NM*
Interest expense 2,392 2,981 (19.8 )%
Income from continuing operations
before income taxes 35,236 45,631 (22.8 )%
Provision for income taxes 13,777 17,827 (22.7 )%
Income from continuing operations 21,459 27,804 (22.8 )%
Loss from discontinued operations, net of taxes (107 ) (810 ) NM*
Net Income $ 21,352 $ 26,994 (20.9 )%
Net Income Per Common Share - Basic
Income from continuing operations $ 0.41 $ 0.54 (24.1 )%
Loss from discontinued operations - (0.01 ) NM*
Net Income $ 0.41 $ 0.53 (22.6 )%
Net Income Per Common Share - Diluted
Income from continuing operations $ 0.41 $ 0.54 (24.1 )%
Loss from discontinued operations - (0.02 ) NM*
Net Income $ 0.41 $ 0.52 (21.2 )%
* Not Meaningful
Average Common And Common Equivalent Shares
Basic 51,914 51,206
Diluted 52,633 51,511
Dividends Declared Per Common Share $ 0.270 $ 0.260
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)
Quarter Ended April 30,
(In thousands) 2010 2009
Net cash provided by continuing operating activities 49,960 30,881
Net cash provided by discontinued operating activities 3,276 10,242
Net cash provided by operating activities $ 53,236 $ 41,123
Net cash used in investing activities $ (4,815 ) $ (2,465 )
Common stock purchases 1,794 1,053
Dividends paid (7,022 ) (6,673 )
Borrowings from line of credit 98,000 170,000
Repayment of borrowings from line of credit (125,000 ) (215,000 )
Changes in book cash overdrafts (a) (16,427 ) 7,885
Net cash used in financing activities $ (48,655 ) $ (42,735 )
Six Months Ended April 30,
(In thousands) 2010 2009
Net cash provided by continuing operating activities 37,740 44,341
Net cash provided by discontinued operating activities 6,583 22,861
Net cash provided by operating activities $ 44,323 $ 67,202
Net cash used in investing activities $ (11,739 ) $ (8,114 )
Proceeds from exercises of stock options
(including income tax benefit) 3,045 1,516
Dividends paid (14,014 ) (13,314 )
Borrowings from line of credit 229,000 343,000
Repayment of borrowings from line of credit (256,500 ) (391,000 )
Changes in book cash overdrafts (a) (7,325 ) (5,966 )
Net cash used in financing activities $ (45,794 ) $ (65,764 )
(a) Amount shown for the quarter and six months ended April 30, 2009 reflects an immaterial correction of certain net book credit cash balances; resulting in an decrease in net cash used in financing activities for the quarter ended April 30, 2009 in the amount of $7.9 million and an increase in net cash used in financing activities for the six months ended April 30, 2009 in the amount of $6.0 million.
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)
April 30, October 31,
(In thousands) 2010 2009
Assets
Cash and cash equivalents $ 20,943 $ 34,153
Trade accounts receivable, net 442,709 445,241
Prepaid income taxes 12,913 13,473
Current assets of discontinued operations 6,009 10,787
Prepaid expenses 39,271 38,781
Notes receivable and other 18,155 21,374
Deferred income taxes, net 52,347 52,171
Insurance recoverables 4,898 5,017
Total current assets 597,245 620,997
Non-current assets of discontinued operations 2,792 4,567
Insurance deposits 42,179 42,500
Other investments and long-term receivables 5,668 6,240
Deferred income taxes, net 57,815 63,444
Insurance recoverables 65,819 67,100
Other assets 31,749 32,446
Investments in auction rate securities 19,634 19,531
Property, plant and equipment, net 56,397 56,892
Other intangible assets, net 54,731 60,199
Goodwill 547,880 547,237
Total assets $ 1,481,909 $ 1,521,153
Liabilities
Trade accounts payable $ 57,011 $ 84,701
Accrued liabilities
Compensation 85,282 93,095
Taxes - other than income 14,134 17,539
Insurance claims 78,803 78,144
Other 73,400 66,279
Income taxes payable 1,832 1,871
Current liabilities of discontinued operations 1,270 1,065
Total current liabilities 311,732 342,694
Income taxes payable 25,327 17,763
Line of credit 145,000 172,500
Retirement plans and other 31,644 32,963
Insurance claims 266,572 268,183
Total liabilities 780,275 834,103
Stockholders' Equity 701,634 687,050
Total liabilities and stockholders' equity $ 1,481,909 $ 1,521,153
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)
Quarter Ended April 30, Increase
(In thousands) 2010 2009 (Decrease)
Revenues
Janitorial $ 574,046 $ 589,344 (2.6 )%
Parking 114,003 113,347 0.6 %
Security 80,712 82,403 (2.1 )%
Engineering 86,190 70,194 22.8 %
Corporate 510 423 20.6 %
$ 855,461 $ 855,711 NM*
Operating Profit
Janitorial $ 29,025 $ 34,894 (16.8 )%
Parking 5,184 4,859 6.7 %
Security 941 1,397 (32.6 )%
Engineering 4,856 4,038 20.3 %
Corporate (24,457 ) (22,570 ) (8.4 )%
Operating profit 15,549 22,618 (31.3 )%
Other-than-temporary impairment losses
on auction rate security:
Gross impairment losses 101 - NM*
Impairments recognized in
other comprehensive income 26 - NM*
Interest expense 1,177 1,313 (10.4 )%
Income from continuing operations
before income taxes $ 14,245 $ 21,305 (33.1 )%
Six Months Ended April 30, Increase
(In thousands) 2010 2009 (Decrease)
Revenues
Janitorial $ 1,158,125 $ 1,197,764 (3.3 )%
Parking 226,591 229,016 (1.1 )%
Security 164,309 167,986 (2.2 )%
Engineering 175,541 147,410 19.1 %
Corporate 779 1,007 (22.6 )%
$ 1,725,345 $ 1,743,183 (1.0 )%
Operating Profit
Janitorial $ 63,109 $ 67,205 (6.1 )%
Parking 10,210 9,001 13.4 %
Security 2,287 3,191 (28.3 )%
Engineering 9,848 8,704 13.1 %
Corporate (47,699 ) (39,489 ) 20.8 %
Operating profit 37,755 48,612 (22.3 )%
Other-than-temporary impairment losses
on auction rate security:
Gross impairment losses 36 - NM*
Impairments recognized in
other comprehensive income 91 - NM*
Interest expense 2,392 2,981 (19.8 )%
Income from continuing operations
before income taxes $ 35,236 $ 45,631 (22.8 )%
* Not Meaningful
ABM Industries Incorporated and Subsidiaries
Reconciliations of Non-GAAP Financial Measures
(Unaudited)
(in thousands, except per share data)
Quarter Ended April 30, Six Months Ended April 30,
2010 2009 2010 2009
Reconciliation of Adjusted Income from Continuing
Operations to Net Income
Adjusted Income from Continuing Operations $ 11,925 $ 16,397 $ 25,965 $ 29,359
Items Impacting Comparability, net of taxes (3,302 ) (3,348 ) (4,506 ) (1,555 )
Income from Continuing Operations 8,623 13,049 21,459 27,804
Loss from Discontinued Operations (46 ) (272 ) (107 ) (810 )
Net Income $ 8,577 $ 12,777 $ 21,352 $ 26,994
Reconciliation of Adjusted Income from Continuing
Operations to Income from Continuing Operations
Adjusted Income from Continuing Operations $ 11,925 $ 16,397 $ 25,965 $ 29,359
Items Impacting Comparability:
Corporate Initiatives and Other (a) (1,005 ) (5,515 ) (2,975 ) (12,163 )
Third-Party Administrator Legal Settlement - - - 9,601
Litigation Contingency (4,400 ) - (4,400 ) -
Total Items Impacting Comparability (5,405 ) (5,515 ) (7,375 ) (2,562 )
Income Taxes Benefit 2,103 2,167 2,869 1,007
Items Impacting Comparability, net of taxes (3,302 ) (3,348 ) (4,506 ) (1,555 )
Income from Continuing Operations $ 8,623 $ 13,049 $ 21,459 $ 27,804
Reconciliation of Adjusted EBITDA to Net Income
Adjusted EBITDA $ 29,378 $ 36,064 $ 62,047 $ 66,411
Items Impacting Comparability (5,405 ) (5,515 ) (7,375 ) (2,562 )
Discontinued Operations (46 ) (272 ) (107 ) (810 )
Income Tax (5,622 ) (8,256 ) (13,777 ) (17,827 )
Interest Expense (1,177 ) (1,313 ) (2,392 ) (2,981 )
Depreciation and Amortization (8,551 ) (7,931 ) (17,044 ) (15,237 )
Net Income $ 8,577 $ 12,777 $ 21,352 $ 26,994
Reconciliation of Adjusted Income from Continuing Operations per Diluted
Share to Income from Continuing Operations per Diluted Share
Quarter Ended April 30, Six Months Ended April 30,
2010 2009 2010 2009
Adjusted Income from Continuing
Operations per Diluted Share $ 0.23 $ 0.32 $ 0.49 $ 0.57
Items Impacting Comparability, net of taxes (0.07 ) (0.07 ) (0.08 ) (0.03 )
Income from Continuing Operations
per Diluted Share $ 0.16 $ 0.25 $ 0.41 $ 0.54
Diluted Shares 52,719 51,553 52,633 51,511
(a) Corporate initiatives and other include: (i) costs associated with the implementation of a new payroll and human resources information system, (ii) the upgrade of the Company's accounting system, (iii) the completion of the corporate move from San Francisco, (iv) the integration costs associated with OneSource, and (v) the write-off of deferred acquisition costs due to the adoption of an accounting pronouncement.
ABM Industries Incorporated and Subsidiaries
Reconciliation of Estimated Adjusted Income from Continuing Operations per Diluted Share to
Income from Continuing Operations per Diluted Share for the Year Ending October 31, 2010
Year Ending October 31, 2010
Low Estimate High Estimate
(per diluted share)
Adjusted Income from Continuing Operations per Diluted Share $ 1.35 $ 1.45
Adjustments to Income from Continuing Operations (a) (0.10 ) (0.10 )
Income from Continuing Operations per Diluted Share $ 1.25 $ 1.35
(a) Adjustments to income from continuing operations are expected to include additional costs associated with the implementation of new information technology systems and other unique items impacting comparability.

SOURCE: ABM Industries Incorporated

ABM Industries Incorporated
Investors & Analysts:
David Farwell
212-297-9792
dfarwell@abm.com
or
Media:
Tony Mitchell
212-297-9828
tony.mitchell@abm.com

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